Calculators

Spring Home Maintenance Checklist

As you go about your annual spring-cleaning ritual, take a few additional steps to save money on energy bills this summer, improve your home's appearance and ward off big-ticket repairs later.

Here are 18 things for you (or the handyman) to tackle now to help prepare your home for the warmer months and keep it in top shape.

For about $75 to $200, a technician will tune up your cooling system to manufacturer-rated efficiency -- and you won't sweat the first hot weekend with an out-of-commission air conditioner.

Look for a heating and air conditioning contractor that belongs to the Air Conditioning Contractors of America, employs technicians certified by the North American Technician Excellence (NATE) program and follows the protocol for the ACCA's national standard for residential maintenance. Call your electric utility to see whether it offers incentives.

Note: Dirty filters make your air conditioner work harder, increasing energy costs and possibly damaging your equipment. Check them monthly and replace as needed, or at least every three months.

Air conditioners draw moisture from interior air, called condensate, which must run off outside. If sediment and algae clog the drains, water may back up, making your home more humid or creating water damage. Technicians will check the drains during a tune-up. If they come for an emergency clean-out, it could cost up to $150.

If you live in a humid climate, you may want to check and clean the drains yourself periodically.

With an initial investment of $20 to $250 for a programmable thermostat, Energy Star says you can save about $180 annually on cooling and heating bills -- if you can live with higher indoor temperatures in summer (and cooler temperatures in winter). Set the "hold" or "vacation" feature for a constant, efficient temperature when you're away for the weekend or on vacation.

In summer, you can make those settings more tolerable if you install ceiling fans. Just remember that a ceiling fan cools people, not a room, so turn it off when you leave the room.

Also, take a moment to clean them. Remove a unit's front grill, then its air filter, and clean dust and dirt from the filter. Check the filter monthly throughout the cooling season.

If you live in a hot, dry climate and cool your home with an evaporative, or "swamp," cooler, you must drain and clean the cooler seasonally to remove built-up of sediment and minerals.

Energysavers.gov says that the more a cooler runs, the more maintenance it will need, requiring that you look at the pads, filters, reservoir and pump at least monthly. For more information on evaporative coolers, visit www.h2ouse.org.

If the gap around a door or window is wider than a nickel, you need to reapply exterior caulk, says Bill Richardson, past president of the American Society of Home Inspectors. Check window-glazing putty, too, which seals glass into the window frame.

Add weather-stripping around doors, making sure that you can't see any daylight from inside your home. You'll save money on air conditioning and you won't have to repeat this task in the fall.

Nature's detritus -- decomposed leaves, twigs, and spring petals and seeds (think maple-tree "helicopters") -- may be worse in spring than in fall. Gutter cleaning generally costs $90 to $225 for a 2,000-square-foot home (with about 180 linear feet of gutter).

Add extensions to downspouts to carry water at least 3 to 4 feet away from your home's foundation. You can use 4-inch corrugated plastic pipe (about $6 for 10 feet).

An easy way to inspect the roof to find damaged, loose or missing shingles without risking life and limb is to use a pair of binoculars. If need be, hire a handyman to repair a few shingles ($95 to $125 for asphalt shingles, according to www.costhelper.com). If the damaged section is more extensive, you'll need a roofer (who will charge $100 to $350 to replace a 10-by-10-square-foot area). Check and repair breaks in the flashing seals around vent stacks and chimneys, too.

If your home has a flat roof with a parapet (a short wall around the perimeter), look for wear and tear in the roof surface. Check the flashing that seals the joint between the parapet and roof. Heavy snow can split the flashing, resulting in leaks. If you need repairs, look for a roofer at the Web site of the National Roofing Contractors Association.

Clean out any roof drains or scuppers (openings in the parapet that allow water to drain) to avoid ponding; which could damage your roof, and cause leaks below. A "roof repair" or "sewer and pipe cleaning" company can help.

If dark streaks and stains blight a light-colored roof, it has an algae problem (dark roofs may have it, too, but you can't see it). You can get rid of it temporarily by using a garden sprayer to apply a 50/50 solution of water and bleach, which you rinse after 10 to 15 minutes. (Before you start, wet down or cover plants below.) Don't scrub or pressure wash lest you damage shingles.

You can hire a professional roof cleaner for about 20 to 30 cents per square foot, according to www.costowl.com. Look for one that belongs to the Roof Cleaning Institute of America. Roof cleaning can also restore cedar-shake and tile roofs to their original brightness.

Spring-clean your home's exterior to remove accumulated dirt, mold, stains and the like from the siding, deck, sidewalks, driveway and garage floor, fences, and lawn furniture. You can rent a pressure washer for $40 to $75 a day or hire help for 8 to 80 cents per square foot, according to CostHelper.com, depending on the amount and type of crud.

It's only when the windows are clean and the spring sun shines in that you'll realize how dirty they were. If this task isn't on your DIY list, you'll generally pay $2 to $7 per pane for a pro to do the job. And don't forget the screens (50 cents to $5 per screen, depending on size). You may have to pay more for cleaning on a third or fourth story.

Before washing the glass, clean out the sills and window tracks with a soft brush or vacuum attachment. Pour a small amount of water into the sill to ensure that weep holes, which drain rainwater to the exterior, aren't clogged up. If the water doesn't exit, use a piece of thin wire to gently clear the hole. Window washers may charge extra to do this.

Fix any breakdown in concrete or asphalt before it worsens. You can patch or fill surface cracks, chips or flaking in concrete yourself using cement-repair products, such as those made by Quikrete (to learn how, search for "fill concrete cracks" at YouTube.com). For deeper cracks, settling or sunken concrete, or frost heaves (when moisture beneath the concrete has frozen and jacked up the slab), call a pro, whether a handyman or a concrete contractor (www.concretenetwork.com). For approximate costs by project, visit CostHelper.com and search for "Concrete Repair Cost."

Asphalt is harder to work with, so call a pro. Look for a member of the National Asphalt Pavement Association or look under "paving contractors" in the Yellow Pages.

To increase the longevity of your driveway, have asphalt resealed every two to five years, depending on climate and wear patterns, and have concrete resealed every one to three years (you can probably do the concrete job yourself). A sealing contractor may charge $233 to seal a typical 20-by-50-foot driveway in good condition, according to DIYorNot.com.

An informal survey of homeowners reveals that the vast majority would rather have multiple root canals than cope with a basement that periodically gets wet. If you have a sump pump, make sure it's operating properly (see the discussion of sump pumps at www.statefarm.com, or call a plumber).

If water seeps through the foundation walls (does your basement smell musty? are the walls stained?), the best solution is probably to excavate the exterior wall and apply a waterproofing sealant (about $30 per square foot of below-grade wall), and install a wall and footing drainage system, says professional engineer Kenneth Fraine, of Leesburg, Va. Fraine says that if your home is on a slope, an exterior drain pipe leading away from the foundation (about $1,000) is better than a sump pump. "Gravity never fails," he says.

Resealing is always a good idea to protect the wood. But more important, before you invite the clan for a reunion, make sure your deck can handle the load. The North American Deck and Railing Association says that deck components inevitably age, but that salt air can hasten deterioration and heavy snow can cause stress damage.

At a minimum, test several areas of the deck for decay, especially those that tend to stay damp. Two signs: The wood is soft and spongy, and it doesn't splinter if you poke it with an ice pick or screwdriver. (For a complete checklist, visit www.nadra.org, or find a home inspector at www.ashi.org.)

At the end of the heating season you'll have no problem getting an appointment. Look for chimney sweeps certified by the Chimney Safety Institute of America. The sweep will make sure that the chimney caps are in place and the damper is working properly. With a wood-burning fireplace, you can close the damper whenever the fireplace is not in use. In summer, you'll save energy and reduce unpleasant odors carried by the inflow of air and aggravated by humidity.

For the greatest energy savings, insert a fireplace "draft stopper" in the flue, preferably after you've had the chimney cleaned.

A dull lawn mower blade doesn't slice, but instead tears grass, leaving it vulnerable to disease, sun damage and insects. A blade typically needs sharpening once or twice a year, or more often depending on how big your yard is, how frequently you mow and the type of grass you have, according to the University of Florida.

You should also tune up your lawn mower after every 25 hours of use to increase its efficiency and reduce polluting emissions. Follow the manufacturer's instructions to change the spark plug(s), oil and oil filter (or clean it). A pro tune up will cost an average of $75, but you can do the job yourself for about $15 -- the cost of oil and parts.

If you have an irrigation system, you may be overwatering (and wasting money on water bills) because a controller isn't properly set for your yard's needs or because of broken or leaky components. Many Western communities offer an audit for free, but you must fix any problems it identifies.

Even if you clean your clothes dryer's lint trap before every use, the vent accumulates lint over time, like plaque in your arteries, says Richardson. That's especially likely if snow covered the exterior backdraft damper for a while last winter.

A clogged vent can reduce your dryer's efficiency and create a fire hazard. If you're up for doing it yourself, check out this how-to guide to dryer-vent cleaning from About.com.

7 Features Home Buyers Want Most

Homeowners are sometimes hesitant to upgrade when it's time to sell. After all, you won't be living there much longer, and home remodeling efforts only increase home values by 66.1% of the average project's costs, according to Remodeling magazine's 2014 Cost vs. Value report.

But think again, sellers. The cost of inaction can be far greater than the small loss you'll incur on any home-improvement projects. "It can mean the difference between getting multiple bids at once and driving up the selling price or getting no offers," says Brian Lewis, a real estate broker with Halstead Property, a New York-based realty firm. As your house lingers on the market, you'll likely pay ongoing mortgage, maintenance and staging costs.

We've already highlighted several household features home buyers hate, including popcorn-finished ceilings, brass fixtures and vanity strip bathroom lighting. Now, consider what buyers want to see -- and what it will take to add such features to your home. Take a look at 7 popular features that will help your home sell faster.

Separate Laundry Room

Percentage of buyers who want this feature: 93%Cost to renovate: $2,637 - $3,077 for an 80-square-foot space

Fifty-seven percent of home buyers say they wouldn't buy a home without a laundry area. "Having a separate room [to use for things such as folding or ironing clothes] helps to keep the mess out of your living space . . . Potential buyers will see it as a huge benefit," says Paul Sullivan, founder and president of the Sullivan Company, a Newton, Mass., remodeling and custom-building firm.

The estimated cost is for a laundry room renovation and includes replacing existing cabinetry, countertops, the sink and flooring, painting the walls, and updating the plumbing and lighting fixtures.

Exterior Lighting

Percentage of buyers who want this feature: 90%Cost to install: $150 to $250 per fixture

Homes with exterior lighting help grab potential buyers' attention before they even set foot in the front door. In fact, exterior lighting is the most-wanted outdoor feature, according to NAHB. "Exterior lighting -- specifically, wall lanterns and landscape lights for accent plus above ground spotlights aimed at the front wall -- make an attractive first impression and enhance curb appeal after dark," says Neil Parsons, owner of Design Build Pros, a Toms River, N.J., remodeling firm.

Swapping out your old windows for new fuel-efficient versions will help your home stand out to buyers looking to cut down on utility costs.

Energy Star-qualified windows, which can help reduce energy bills by up to 15%, come equipped with an invisible glass coating, vacuum-sealed spaces filled with inert gas between panes, sturdier weather stripping, and improved framing materials -- all of which reduce undesirable heat gain and loss in the home. "Buyers are most impressed with smart, energy-efficient choices that in no way limit their comfort, but in every way save them money in the long run," Lewis says.

Garage Storage Space

Percentage of buyers who want this feature: 86%Cost to install: $2,025 - $2,363 for a 380-square-foot space

Buyers with growing families are going to need lots of storage space. "A seller should ensure that such bonus space is easily accessible and wonderfully organized," Lewis says. Additional storage units located in the garage help to keep clutter out of the main living areas of the home. Unlike an attic or backyard shed, the garage is accessible -- generally just a few steps away from the front door, making it easier to transport items such as tools or patio chairs or boxes of toys to and from other parts of your house.

The installation cost includes adding cabinetry, a peg wallboard for tools and improved lighting and electrical circuits.

Eat-In Kitchens

Percentage of buyers who want this feature: 85%Cost to install: $1,000+

Eat-in kitchens are a must-have for many home buyers, especially families with children. "[It] adds soul to a home," Lewis says. It's a space where families often congregate in the morning for breakfast before the kids head off to school or parents to work. Or in the evening for dinner, so everyone can share highlights from their day.

If you're looking to maximize space by knocking out a wall to allow for a small table and chairs in your kitchen, you should first determine whether the wall is structural or load bearing, Parsons says. Another concern is the possibility of mechanicals in the wall, such as plumbing, duct work and electrical wiring, that may need to be removed, he adds. Lastly, once an interior wall has come down, the flooring material that surrounds the drywall and base molding will need to be patched up. Removing a wall is relatively inexpensive, but that price can quickly escalate if there's additional repair work that needs to be done, Parsons warns.

Walk-In Kitchen Pantry

Percentage of buyers who want this feature: 85%Cost to install: Varies depending on design and location

Additional storage space in the kitchen is a big plus for potential home-buyers. Walk-in pantries that have built-in organization systems to stash food and food-prep items out of sight help make an already-tight space feel less cluttered. "The key is [having] strong adjustable shelving that allows people to change things around as their needs change," Sullivan says. It's a bonus if your pantry also allows you to neatly tuck away mops and brooms, he adds.

Wireless Home Security System

Percentage of buyers who want this feature: 50%Cost to install: $100 - $300

It's the digital age, and tech-savvy buyers are looking for places to call home that have lots of modern conveniences. Wireless home security systems rank the highest among technology features buyers would like to have most, according to NAHB. Systems that can be easily controlled by a tablet or smart phone app are especially attractive to buyers, Parsons adds.

Installing a wireless home security system is less expensive than a hard-wired version and doesn't require professional assistance to install.

The Upsides of Downsizing Your Home

It can happen when the kids leave home or retirement looms or your first grandchild is born hundreds of miles away. You start to think about leaving a house that's now too big for you and downsizing to a smaller house or condo or a retirement community.

After launching three sons from their home of 23 years, Mike and Patty Denevi, both 61, of Los Gatos, Cal., shared an epiphany. "We realized that we spent all our time in our home's kitchen and bedroom. We didn't really need this house anymore. What were we doing here?" says Mike. "We thought, Wouldn't it be fun to live near downtown?"

The Denevis listed their 2,056-square-foot home with four bedrooms and three bathrooms for just over $1 million in early 2011. (The Bay Area is the most expensive housing market in the U.S.) While they waited for their home to sell, they shopped for their next one. They found a 1,563-square-foot condo with two bedrooms and two baths on a single level that backs up to the high school soccer field. The Denevis paid $669,000 in cash after they sold their home for $950,000. They pay $680 a month in condo fees.

The Denevis are closer to their church and to restaurants and entertainment. The single level is a boon for Patty, who has arthritis. Mike, who works in commercial real estate, has a short commute--on foot--to his gig coaching high school baseball and his senior baseball league.

As the Denevis found, downsizing frees you from the cost and time commitment of maintaining a home that's simply too large. It allows you to unlock your home equity, buy a new place and maybe even retire your mortgage.

After the real estate bust, many homeowners delayed the decision to downsize until their home regained at least some of its market value. Many more owners are ready to sell now. But clearing out and selling a home, buying a new one and relocating--whether across the street, downtown, out of town or across the country—is a major transition that takes careful planning.

Where to?

The decision to downsize may come in a flash, as it did for the Denevis, or it may require lengthy consideration. "Downsizing can and should be a fun, memorable time with your friends and family," says Brian Schwatka, a real estate agent who leads a popular class called "Should I Stay or Should I Go?" in Silicon Valley.

If you research your options, you're less likely to get locked into a situation that doesn't meet your expectations and leads to another move, says Skip Frenzel, a financial planner in Campbell, Cal. It often pays to find a real estate agent who works with seniors, such as an agent who has earned the Seniors Real Estate Specialist (SRES) credential.

Less space doesn't necessarily translate into less money. For example, you may long to live downtown but find that condos are in short supply and priced out of your reach. Seattle agent Greg Bartell says many homeowners sell their homes for, say, $400,000 to $500,000 but find that they will have to spend at least that much for a condo in the city. He suggests that they look at newly redeveloped suburban town centers that offer urban amenities.

Kay Keesee, an agent in Austin, Tex., says downsizing clients often want a smaller home but no less luxury. They want a kitchen with a big island, granite countertops and stainless-steel appliances, and a master suite on the first floor. In newer but smaller homes with those features, the trade-off may be smaller secondary bedrooms and less storage.

You may find the lifestyle you want in an active-adult community or a continuing-care retirement community (CCRC). After Michael Santella, 63, retired from Oak Ridge National Laboratory, he and his wife, Peggy, 62, visited Sun City Mesquite, an active-adult community developed by Del Webb 80 miles from Las Vegas. The Santellas, who lived in Knoxville, Tenn., were avid travelers who loved Las Vegas and visited it a couple of times a year. They signed a contract to build a home in Sun City Mesquite, contingent on the sale of their home in Knoxville. It sold for $385,000 in October 2012, and four months later they moved into their new, 2,100-square-foot home with two bedrooms and two bathrooms. They paid $314,000, and they also pay about $130 a month in homeowners association fees.

"It's like living in a resort every day, with so many activities," says Peggy, who calls Knoxville "the allergy capital of the world." Plus, it's reassuring to know that if one of them is on his or her own someday, "the other person won't be left sitting alone," she says.

Most adult communities provide prospective buyers with the opportunity to visit for a day or stay over a weekend. For example, Sun City Mesquite recently offered a "weekend pass" with hotel accommodations for $99 per couple.

Unlike active-adult communities such as Sun City Mesquite, CCRCs provide assisted-living and skilled-nursing facilities, allowing seniors to age in place. Some also offer memory care. CCRCs are age-restricted (you generally must be at least 55 to buy in). Be sure to check whether a spouse or partner can be younger than the cut-off age.

Continuing-care retirement communities have several financing setups. With a fee-for-service arrangement, you pay less upfront (or nothing beyond monthly rent) and cover care out of pocket if you need it. Some fee-for-service communities require you to buy long-term-care insurance to cover your bases. Contracts that include unlimited, lifetime care in the upfront fee--essentially a form of long-term-care insurance--require the biggest deposits, along with monthly fees. A modified-care agreement requires a smaller entrance fee but limits care to a specified number of days a month, after which residents must pay more. But you generally have to meet financial requirements and be healthy when you arrive. (For more information on choosing a CCRC, see Risks and Rewards of Moving to a CCRC.)

Follow the grandkids

Linda Blomquist, 62, and her husband, Gary, 65, did a different sort of downsizing. They found a house the same size as their old one on more land but slashed their living costs by leaving the pricey Bay Area and moving to Whitehouse, Ohio, near Toledo. Why Ohio? Family. In January 2012, Linda was laid off from her job as an executive assistant with the city of Fremont (Gary was retired due to disability), and the Blomquists decided to sell their home of almost three decades to move near a son's family.

Real estate agent Brian Schwatka helped them create a plan with deadlines for purging their stuff, packing up and listing their 1,500-square-foot home. In Ohio, they found a home with three bedrooms and two bathrooms, on an acre of land. They paid $154,000 in cash after their Bay Area home sold for $655,000.

The couple has cut their cost of living by two-thirds. Linda says that if they had stayed in the Bay Area, she isn't sure she could ever have afforded to retire. They love the uncongested highways, the short lines at the local Costco and the "thoughtful and considerate" people, says Linda. And they love their new job: providing day care for their grandchildren.

Your shopping strategy

You'll have the most leverage if you make a purchase offer on your next home unencumbered by a contingency for the sale of your current home. If that means you have to sell first, consider renting for a while in your new location and leaving your stuff in storage. You'll have more time to explore and find the right place.

If you find your next home before your current one sells and want to make an offer without a contingency, you'll need an alternative source of funds for a down payment and closing costs. Bridge loans are hard to find. You may do best by tapping an existing home-equity line of credit, using a margin loan against investments or borrowing from your 401(k). An IRA can also be a source of a very short-term "loan." The rollover rules let you use IRA funds as long as the money is back in the account within 60 days. Miss that deadline and a withdrawal from a traditional IRA is considered a taxable distribution, and you'll be penalized if you're younger than 59Â½. Money taken from a Roth may not be taxed, but in neither case can the money go back into the tax shelter after the 60-day window closes. If you have a mortgage on your current home, figure that you'll have to make two mortgage payments until it sells.

If you sell before you're ready to move and don't want to move twice, negotiate with your buyers for a "lease back." You'll be allowed to stay in your home for, say, 30 to 60 days after closing the sale.

Mortgage or not? Freeing yourself from the ball and chain of a mortgage and monthly payments is an exciting prospect. But "don't let emotions trump financial logic," says Paul King, a certified financial planner in Campbell, Cal. Paying cash for your next home isn't necessarily your best choice if the rate of return you can earn on that money by investing it beats the after-tax cost of a mortgage. "It's all about living a better lifestyle in the long run, as long as the risks are reasonable," says King.

You don't have to commit to a 30-year mortgage. You could take out a 15-year fixed-rate loan, which usually has a lower interest rate than a 30-year mortgage but will carry a higher monthly payment. Or you could take out a hybrid adjustable-rate mortgage (ARM), with an initial fixed-rate period of three, five, seven or ten years, and pay it off before the first interest-rate adjustment. (In late January, the national average rate for a 30-year fixed-rate mortgage was 4.3%; a 15-year mortgage, 3.4%; and a 5/1 ARM, 3.1%.)

If you haven't applied for a mortgage in years, be prepared to produce heaps of documentation of your income and assets. However, it's easier for retirees with limited income but substantial financial assets to qualify for a mortgage than it was a few years ago.

If you're buying a condo and you need a mortgage, you may have to jump through more hoops than if you were buying a house. You could be liable for special assessments to cover improvements or unexpected repairs. And because the association of owners shares responsibility for the building's exterior and common areas, you'll pay a monthly condo fee. Lenders add in the fee when figuring how much loan you can qualify for.

Buy with a reverse mortgage? A reverse mortgage can be a good option for people who want to move to a smaller home but who don't want to sink all the proceeds from selling their old home into a new one. You can use a Home Equity Conversion Mortgage for Purchase to buy a new home, rolling the purchase and reverse mortgage into one transaction. You must be 62 or older to qualify, and you must make a down payment of about half of the purchase price for a home that will be your primary residence.

Say you sell your home for $500,000 and you want to downsize to a $400,000 house. If you put down, say, $200,000 and take a $200,000 reverse mortgage, you could bank $300,000. You'll still have to pay for repairs, property taxes and homeowners insurance, but no mortgage payment. Instead, interest on the $200,000 loan accrues, eating into the $200,000 of equity created by your down payment. The loan and accrued interest come due when you die, sell or move out for 12 months or more. Live long enough and the interest could wipe out all your equity, but your estate will never have to pay back more than the house is worth.

Watch out for the capital-gains tax. If you've lived in your home for a long time in a high-cost housing market, you could see a chunk of your equity go to federal and state capital-gains taxes. You can exclude up to $500,000 of profit from the sale of your home if you're married filing jointly, or $250,000 if you're single (see 35 Tax Breaks to Save You a Bundle). Your profit is the sale price of your home minus selling expenses and its tax basis--that is, what you paid for it originally plus the cost of any improvements you made. If you think you'll have more than $500,000 in profit, dig out your records of home improvements.

Copyright 2014 The Kiplinger Washington Editors

Details and Disclosures

Equity Disclosures

1Closing Cost Credit: PenFed will pay most closing costs associated with a fixed equity, equity line of credit (ELOC) and 5/5 ELOC loan which includes: credit report, flood certification, settlement/closing, property ownership and encumbrances search, express delivery package, express delivery disbursal, recording, city/county taxes, state taxes, property search and quick close. For New York or Texas properties, borrowers are required to pay title insurance premiums and may use any title company to obtain the closing cost credit. If an appraisal is required, the cost will be paid by the member, who is responsible for the fee whether or not the loan closes. The member is responsible for notary fees. Should this loan be paid off or closed within 24 months (or 36 months for the 5/5 ELOC) from the anniversary date of the loan closing, the member will be obligated to pay PenFed the full amount of the total closing cost for the loan. Other terms and conditions apply; call 1-800-970-7766 for details.

2Interest may be tax deductible, consult a tax advisor for further information regarding the tax deductibility of interest and charges.

Appraisals: An appraisal is required for all applications with a loan to value (LTV) over 80%. For applications with a LTV of 80% or less, PenFed will attempt to establish value via an independent method. If that method is unsuccessful, an appraisal will be required regardless of LTV. An appraisal is required in the following circumstances:

For any loan amount if the loan to value ratio (LTV) is greater than 80%; or

For all fixed term equity loans and equity lines of credit with a loan amount greater than $250,000.

If an appraisal is required it must be ordered by PenFed. You will be contacted for authorization and payment prior to ordering. Appraisal fees average $350 to $525 (some run higher) and approximately 50% of our applications require an appraisal.

Property in First Lien Position: The maximum term for a fixed rate equity loan that reflects PenFed in the first lien position is 60 months. Equity products are not offered on properties that are non-owner occupied with a first lien position.

Property Insurance: Property insurance is required.

PenFed Mortgage Aggregate:If PenFed holds the 1st mortgage plus any equity loans or lines of credit on the same collateral and the new loan exceeds $750,000 maximum combined loan-to-value (CLTV) ratio is 80% CLTV in all states.

PenFed Refinances:

Effective for applications received on or after June 28, 2014- no requirement to take additional funds for refinance.

Multiple Loans: Multiple equity loans and ELOCs are available as long as the member and collateral qualify (except Texas). The total indebtedness cannot exceed $400,000 for all equity and ELOCs combined.

PenFed does not lend on:

Mobile homes

Co-ops or time-shares

Properties that are for sale/rent

Commercial property or property used for commercial purposes, even if a residence is part of the property

Undeveloped property (land only)

Properties with more than 4 units.

Properties that are currently under major construction/renovations. Property must be fully livable, with no safety issues. (examples: no missing rails from stairs/decks, no open walls with wires showing, missing kitchen appliances/counters, missing bath fixtures or unfinished pool)

In Texas, the maximum owner occupied LTV allowed is 80% and non-owner occupied is LTV 75%. Additional restrictions apply in Texas, so please ask a representative for details.

In states other than Texas, the maximum owner occupied LTV is 90% (first lien position is limited to 80% LTV) and non-owner occupied LTV is 80%. No equity product is offered for non-owner occupied in a first lien position.

The maximum LTV for a condominium in all states is 70%.

Rates are higher for non-owner occupied properties. Other terms and conditions may apply. Call 800-970-7766 to talk to a representative for details.

Minimum Loan Amount Requirements in all States:

For a fixed home equity loan and ELOC owner occupied property the minimum loan amount is $10,000 and the maximum amount is $400,000 with an LTV of 85% or less of the fair market value and a maximum of $100,000 with an LTV 85.01 to 90.00%.

For a non-owner occupied fixed home equity loan and ELOC the minimum loan amount is $10,000 and the maximum amount is $400,000 with an LTV up to 80% of the fair market value.

For a 5/5 ELOC owner occupied property the minimum loan amount is $25,000 and the maximum amount is $400,000 with a LTV of 75% or less of the fair market value and non-owner occupied LTV of 70% or less of the fair market value.

Fixed Home Equity Loan Payment Examples: For an owner occupied home of $25,000 at 3.24% APR payable over 5 years: 60 monthly payments of approximately $451.89 each. For an owner occupied home of $25,000 at 4.24% APR payable over 15 years: 180 monthly payments of approximately $187.94 each.

Equity Line of Credit: Rate depends on loan term length, loan to value (LTV), fair market value (FMV) owner occupancy, and use of funds. Typical closing costs range from $250 to $750 depending on the loan amount and county where property resides.

The minimum credit advance that you can receive is $100. (The minimum in Texas is $4,000). PenFed does not allow Automated Clearing House (ACH) advances on Equity Line of Credit accounts. PenFed reserves the right to reject any advance that is converted to an electronic check by the merchant and submitted via ACH.

LTV ratio requirements:

In Texas, the maximum combined loan to value (CLTV) allowed is 80% with an ELOC amount not to exceed 50% of the market value, regardless of equity available. Additional restrictions apply in Texas, so please ask a representative for details.

In states other than Texas, the maximum owner occupied LTV is 90% and non-owner occupied LTV is 80%. No equity product is offered for non-owner occupied in a first lien position.

The maximum LTV for a condominium in all states is 70%.

Rates are higher for non-owner occupied properties. Other terms and conditions may apply. Call 800-970-7766 to talk to a representative for details.

5/5 Equity Line of Credit: Rate depends on loan term length, loan to value (LTV), fair market value (FMV) owner occupancy, and use of funds. Typical closing costs range from $250 to $750 depending on the loan amount and county where property resides.

LTV ratio requirements:

In Texas, the maximum combined loan to value (CLTV) allowed is 75% with an ELOC amount not to exceed 50% of the market value, regardless of equity available. Additional restrictions apply in Texas, so please ask a representative for details.

In states other than Texas, the maximum owner occupied LTV is 75% and non-owner occupied LTV is 70%. No equity product is offered for non-owner occupied in a first lien position.

The maximum LTV for a condominium in all states is 70%.

Rates are higher for non-owner occupied properties. Other terms and conditions may apply. Call 800-970-7766 to talk to a representative for details.

5/5 Equity Line of Credit Rate Adjustments and Terms: The 5/5 ELOC is an adjustable rate loan product with an APR that can be adjusted every five years. The rate is indexed to the United States Treasury Security adjusted to a constant maturity of five years as published in the Wall Street Journal each Tuesday. The 5/5 ELOC has a term of 180 months during which time the member can access the account. Non-owner occupied properties have a term of 144 months. The loan must be paid off at the end of the term. Members with expiring 5/5 ELOCs will be contacted prior to the maturity date with an offer to refinance the credit line if there is a balance. The member must qualify for the new credit line. Other terms and conditions apply; call 1-800-970-7766 for details.

Rates are higher for non-owner occupied properties. Other terms and conditions apply. Call 800-970-7766 to talk to a representative for details.

All rates and offers are as of March 2015 and subject to change without notice. To receive advertised product you must become a member of PenFed by opening a share (savings) account.

We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

This credit union is federally insured by the National Credit Union Administration. Rates are current as of March 2015 unless otherwise noted and are subject to change. APY = Annual Percentage Yield APR = Annual Percentage Rate

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* In states other than Florida, Michigan, and Texas, the maximum owner occupied CLTV (combined loan to value) for a PenFed Home Equity Loan is 85%, non-owner occupied is 75%. In Florida and Michigan, the maximum owner occupied CLTV is 70%. In Texas, the maximum owner occupied CLTV allowed is 80% and non-owner occupied is CLTV 75%. Additional restrictions apply in Texas, so please ask a representative for details. The maximum CLTV on condominiums in all states is 70%.